This blog began through a NIFA grant for Missouri Beginning Farmers. It continues today as a way for beginning farmers to learn about new ideas and to hear about upcoming events of interest. It is maintained by Debi Kelly (kellyd@missouri.edu).

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As an Extension Associate with the University of Missouri, I work with beginning farmers, small farms, alternative agriculture and organic farming. I am also the Co-coordinator for the Missouri Sustainable Agriculture and Research (SARE) Education Professional Development Program (PDP).

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Friday, March 27, 2015

Free NRCS Tool Helps Farmers Determine Economics of Using Cover Crops

By now most farmers have
heard about cover crops and how incorporating them into rotations can increase
yields and reduce input costs while providing other valuable benefits. But
there still are many farmers who have not tried cover crops because they are
unsure about the costs.

To help answer that
question, the USDA’s Natural Resources Conservation Service, or NRCS, has
developed a simple digital tool. The Cover Crop Economic Decision Support Tool
is a spreadsheet that helps farmers, landowners and others make informed
decisions when considering whether to add cover crops to their systems. It was
developed by two NRCS economists, Lauren Cartwright, of Missouri, and Bryon Kirwan,
of Illinois.

Missouri State
Conservationist J.R. Flores explained that the tool offers a partial budget
analysis. It focuses only on operational changes that farmers make, things that
affect the actual costs and benefits that farmers see when they add cover
crops.

“The tool focuses on
benefits and costs that can easily be expressed in dollars,” Flores said. “As a
natural resources agency, we are excited about the resource benefits realized
when farmers utilize cover crops and no-tillage. But we also understand that
farmers need to be profitable. We hope that this tool will help farmers see
that they don’t have to sacrifice one of those two things to realize the
other.”

Cartwright said her
inspiration for developing the tool came from attending some of the many soil
health workshops throughout the state.

“I would hear the main
speakers, farmers who have been using cover crops for many years, talk about
how they have no runoff and they are producing corn for less than $2 per
bushel. And I found myself thinking ‘That’s good. But how did you get to that
point, and how much did it cost to get there?’” she said.

Cartwright said she teamed
up with Kirwan to develop the tool because they each brought a different
skillset to the process. Kirwan has a strong economic and agronomic background,
and owns a farm. Cartwright has degrees in environmental science and economics
and is strong in programming. She has used her skills to develop seven other
economic tools for NRCS.

The spreadsheet tool that
Kirwan and Cartwright developed is designed to measure:

Direct nutrient credits

Input reductions

Yield increases and
decreases

Seed and establishment
costs

Erosion reductions

Grazing opportunities

Overall soil fertility
levels

Water storage and
infiltration improvements

The tool’s analysis
depends on data that farmers enter. They can run “what if” scenarios if they
want to evaluate a range of values. The tool offers results in both dollars and
graphs, showing short-term and long-term benefits.

Cartwright said for most
scenarios, the tool shows a clear financial benefit for those who learn to
manage cover crops and stick with them. There is a significant jump in benefits
over time, primarily because of increased organic matter in the soil. The tool
also indicates that short-term costs can be offset by farmers who incorporate
grazing of cover crops.

According to NRCS and
other research, long-term use of cover crops offers improved profitability
because of higher yields and lower input costs. Healthier soil also improves
water quality, infiltration, weed and pest control, wildlife habitat, and more.

“Some people view cover
crops as a trend,” Flores said. “I think it is much more than that. Farming in
ways that improve soil health is coming to the forefront now, but those ways
will eventually become commonplace.”